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CIMA Updated P2 Exam Questions and Answers by sultan

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CIMA P2 Exam Overview :

Exam Name: Advanced Management Accounting
Exam Code: P2 Dumps
Vendor: CIMA Certification: CIMA Management
Questions: 202 Q&A's Shared By: sultan
Question 28

The manager of Ice Sculpting Co. believes that too much material is being wasted during downtime. She researched, and found throughput accounting to be an adequate alternative. However, she wasn't sure if all that

she read was accurate.

Which of the following statements are TRUE when using Throughput Accounting? Select ALL that apply.

Options:

A.

If there is no demand, then there should be no production.

B.

Not all sales equal to profit

C.

Stocking up on inventory is bad for business.

D.

All costs, except materials, are considered fixed.

E.

Departments should be operating at full capacity regardless of bottlenecks

Discussion
Question 29

A company is investing $150,000 in a project which will yield an annual cash inflow of $40,000 for eight years. The company's cost of capital is 10%.

To the nearest $100, what is the project's equivalent annual net present value?

Options:

A.

$11,900

B.

$7,900

C.

$63,400

D.

$21,300

Discussion
Question 30

A company manufactures and sells a range of products. Relevant data for one unit of a particular product are as follows.

Questions 30

The company is using target costing to ensure that it achieves a contribution of 40% of the market selling price.

In order to achieve the target cost, by how much does the company need to reduce the variable cost per unit?

Options:

A.

$ 2.10

B.

$ 0.50

C.

$ 1.40

D.

$ 2.60

Discussion
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